Analysis of the effect of the financial transferts on regional economic growth in Morocco using panel econometric modeling

Abstract

Abstract:

Morocco's adoption of the advanced regionalization project in 2015 has set the country on a new socio-economic development trajectory. This approach aims to ensure convergence on a sustained and balanced regional economic growth path and reduce interregional disparities. The region is considered an essential vector in the success of development strategies. This project requires sufficient and sustained funds through regional tax effort management or increased financial transfers. However, raising the transfer rate may boost regional economic growth or increase dependency. Using econometric modeling and panel data (2004–2016), the study shows that financial transfers positively and significantly enhance regional economic growth.

Keywords: Financial transfers, Regional economic growth, Panel data, The 12 regions of Morocco.